Question 1

What is Westamerica Bancorporation's WACC?

Accepted Answer

Westamerica Bancorporation (WABC) has a Weighted Average Cost of Capital (WACC) of 7.72%. This is calculated using a Cost of Equity of 7.75% (via CAPM with a beta of 0.61) and a pre-tax Cost of Debt of 9.42%, with an equity weight of 90.50% in the capital structure.

Question 2

Is Westamerica Bancorporation's WACC high or low?

Accepted Answer

Westamerica Bancorporation's WACC of 7.72% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Westamerica Bancorporation's WACC calculated?

Accepted Answer

Westamerica Bancorporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.75% is derived from the CAPM model using a beta of 0.61. The pre-tax Cost of Debt (Rd) is 9.42%. The capital structure is 90.50% equity and 9.50% debt.

Westamerica Bancorporation (WABC) — WACC 分析

WACC 构成

解读

Westamerica Bancorporation（WABC）WACC：7.72%

WACC计算器

Westamerica Bancorporation（WABC） WACC 解读

WABC 公司分析

WABC DCF 估值

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